PGEO - Strategies for 1 GW output target

PGEO conducted several strategies to meet 1 GW electricity output target by 2025. Management has signed MoU with Kaishan Orka Indonesia & Schlumberger Geophysics Nusantara for technology optimization of binary technology and steam recovery method, Chevron New Energy International for South Sumatera grid resource confirmation of 900 MW and Pembangunan Aceh for exploration permit extension. PGEO developed secondary product of green hydrogen as well for more economical purpose. (Source : Kontan) Comment : We view the target is seen realistic as Indonesia geographic position on the ring of fire. We also see its strategic effort likely to accelerate fulfilling the target, commencing business integration by downstreaming the product to be green hydrogen and potential revenue diversification. However, it found challenging as lower penetration on renewable energy considering higher cost compared to other energy outputs.